CityFibre has completed the acquisition of all the metropolitan local-access duct and fibre network assets of leading IT managed services provider Redcentric. The network assets total at least 137km and include the metro networks in Portsmouth and Southampton.
The deal accelerates CityFibre’s recent growth, and it now owns 40 major UK metro networks, making it an increasingly powerful national competitor to BT Openreach. The deal saves CityFibre considerable time and millions of pounds in capex when compared to a self-build alternative.
In the £5 million network acquisition, CityFibre has secured £4.5m in long-term dark-fibre leasing commitments from Redcentric which become a major new customer.
Redcentric will continue to operate the fibre infrastructure to serve the connected customers; and CityFibre’s new network will continue to serve 188 Redcentric customer connections.
As part of the transaction, Redcentric has also entered into a framework agreement with CityFibre for the use of CityFibre’s infrastructure across its national footprint. CityFibre will soon make the new footprint available to its wholesale partners, comprising business ISPs, public-sector service integrators, mobile operators and data centres among others.
The newly-acquired networks are routed to address local areas of identified high demand for high-bandwidth services. Once made widely available, the networks will also benefit the wider local communities as they attract inward investment and stimulate economic development.
Fraser Fisher, chief executive officer of Redcentric, said: “This disposal is in line with our strategy of control over our customer-affecting core assets while not tying up capital where ownership is unnecessary. We will continue to service customers in Portsmouth exactly as before, and expect to generate additional revenues and network efficiencies over time as a result of our developing relationship with CityFibre.”
Greg Mesch, chief executive officer of CityFibre, said: “Once again we’ve shown that underutilised legacy fibre assets can find a new home in which to flourish within CityFibre’s wholesale shared infrastructure model.”
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